Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which type of accounting provides information primarily for individuals who invest in a business?

Managerial accounting

Cost accounting

Tax accounting

Financial accounting

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Verified step by step guidance

Understand the purpose of each type of accounting: Managerial accounting focuses on internal decision-making, Cost accounting deals with cost analysis, Tax accounting ensures compliance with tax laws, and Financial accounting provides information for external stakeholders like investors.

Recognize that individuals who invest in a business are external stakeholders. They need information about the financial health and performance of the business to make informed decisions.

Learn that Financial accounting is designed to produce financial statements such as the balance sheet, income statement, and cash flow statement, which are used by external parties including investors, creditors, and regulators.

Understand that Financial accounting adheres to standardized principles like GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards) to ensure consistency and comparability of financial information.

Conclude that Financial accounting is the type of accounting that primarily provides information for individuals who invest in a business, as it focuses on external reporting and transparency.